Lein Issue

Comments(9)

• 
  cjmazur17th June, 2004

  is there title insurance?
  
  Most of the times that would take card of it. But if there isn't any it gets alot more messy.
  
  If it's asmall amount if it worth addressing? If it's a large amount, then it gois to the purchase contract and what was being bought.
  
  If clear title was being bought, it should be clear.
  
  Mistakes like this (as you surf here) happen all over the place for a varied of reasons. Sometimes by over sight, sometimes by fraud and sometimes by incompetence.

• 
  JohnLocke17th June, 2004

  raptor_yf22,
  
  Glad to meet you.
  
  You say there was a lien against the owner of the property, was it recorded?
  
  Apparently it wasn't or the title company would have picked it up. If they did not then I am sure they issued title insurance and will be liable to pay the debt holder if the lien was recorded and they missed it.
  
  John $Cash$ Locke[ Edited by JohnLocke on Date 06/17/2004 ]

• 
  JohnMerchant17th June, 2004

  As John L says, there might be any kind of lien on property...and this is the reason why a title policy is a MUST.
  
  It's not the job or role of a RE Agent to clear liens, and maybe isn't the responsibility of the seller...unless the home was sold with the written agreement that the title would be clear.

• 
  commercialking17th June, 2004

  So calm down a little Raptor, There are at least half a dozen ways to transfer title without satisifying a lien. About half are the fault of the lienholder's failure to give notice or file properly or the kind of lien it is the other half are seller's cleverness or whatever. None necessarily imply some grand conspiracy between "Real Estate Agent, a Closing company, and the previous home owners". So tell us what is going on and maybe we can give some relevant information. You seem pretty involved for just passing curiosity.

• 
  raptor_yf2218th June, 2004

  Hi,
  
  Thanks for the replies. No this isn't my house, and I have nothing to do with the lien. I am on the home owners association board, and the board put a lien on this home in our neighborhood. I found out that the lien paperwork was filed on 6/10/2004, and the sale paperwork went through on 6/14/2004. So what happened, was a timing issue. How or what can we do as a board to get the money that we are owed considering the property has already closed?

• 
  raptor_yf2218th June, 2004

  Oh one more thing. The selling agent was aware of the lien but failed to disclose it to the buyers. Fraudish? Maybe, maybe not? Yet to be determined, we have our lawyer looking into it.

• 
  cjmazur18th June, 2004

  This lack of disclosure is stinky..
  
  There shouldn't be timing or "race" condition in finding liens if there aren't mistakes.
  
  It would seem that a HOA lien would be smallish.

• 
  Todd_RE_Investor18th June, 2004

  The short answer is: they don't. If the lien was recorded in Snohomish Co on 6/10/04 and the home closed on 6/14/04, the title company should have found the lein. The listing/selling agent is required to disclose all issues (on the Form 17) that could effect the property. The Escrow company would have a copy of the P&S (w/the Form 17) to perform the closing. You lawyer will find these too. Do you have a long commute to the 9-08 building?

• 
  raptor_yf2219th June, 2004

  Im actually up here in the twin towers but go to DC once a week.